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Short answer: A GST demand or show-cause notice under section 73 or 74 is a proposal. It tells you what the department believes is payable and asks you to explain why. A tax determination or assessment order is the officer’s recorded decision after the applicable process. The section printed on the document matters because “assessment order” can also describe separate procedures under sections 62, 63 or 64.
For any live matter, first identify the statutory section, tax period, document date, service date, form number and whether the document asks for a reply or records a decision. Central GST rules interact with State GST, Union Territory GST and IGST provisions, but the law and forms applicable to your jurisdiction and tax period should be checked before you act.
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Notice versus order: the difference in one table
| Point | Demand or show-cause notice | Determination or assessment order |
|---|---|---|
| Legal function | Proposes tax, interest and any applicable penalty and asks why the amount should not be recovered. | Records the proper officer’s decision under the statutory route cited in the document. |
| What it means | The department has stated an allegation or proposed calculation. It is not, by itself, a final finding that the amount is payable. | The officer has considered the process and confirmed, modified or otherwise disposed of the matter in an order. |
| Your immediate task | Check the alleged facts, legal grounds, tax periods, calculations and reply or hearing instructions; then respond through the applicable procedure. | Read the findings, reasons, confirmed amounts and payment or appeal directions; then identify the available remedy and its deadline. |
| Common electronic summary | DRC-01 accompanies specified notices under the CGST Rules. The detailed notice remains important. | DRC-07 is the electronic summary for specified orders and amounts payable. Assessment routes may use ASMT forms instead. |
| Can it be challenged? | You can contest the proposed basis and amount in your reply and hearing, subject to the procedure and facts. | An order may be open to payment, correction, withdrawal, appeal or another remedy, depending on the section, current law and case facts. |
A form number is only a clue. Read the complete document and the statutory provision it invokes. A document headed “assessment order” is not automatically a section 73 or 74 demand order.
How to identify what you received
Before calculating anything, make a document inventory. The same GST portal may display several communications for one tax period, and a summary can look different from the detailed notice or order.
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- Locate the section. Look for section 73, 74, 62, 63 or 64, or another provision stated in the heading and body. The section determines the trigger, allegation, hearing process and remedy.
- Record the tax period. Note every financial year, month, quarter or return period mentioned. Do not assume that a portal reference covers all periods in your records.
- Record issue and service dates. Keep the date printed on the document and the date it was actually served or made available. Deadlines can depend on service and the applicable version of the law.
- Separate the summary from the detailed document. DRC-01 or DRC-07 may display the headline amount, while annexures contain invoices, return comparisons, calculations and reasons.
- Identify the requested action. Words such as “show cause”, “reply”, “personal hearing” or “why tax should not be demanded” indicate a proposed proceeding. “Determination”, “confirmed”, “amount payable” or “order” indicates a decision, although the exact section still controls.
Keep the original electronic notice or order, attachments, portal acknowledgements, emails and downloaded files together. A screenshot of a dashboard entry without the underlying document may not show all grounds or calculations.
What a section 73 demand notice does
Section 73: non-fraud grounds
Section 73 covers tax that was not paid or was short-paid, an erroneous refund, or input tax credit wrongly availed or utilised for reasons other than fraud, wilful misstatement or suppression of facts to evade tax. The notice sets out the department’s proposed tax, interest and penalty under the Act and invites an explanation.
The wording describes the department’s case at the notice stage. It does not establish that the taxpayer actually made the error or that the proposed amount is correct. Your response can challenge the legal basis, the period, the classification, the computation, the credit treatment or the evidence relied on.
Section 74: fraud, wilful misstatement or suppression allegation
Section 74 addresses a similar type of tax, refund or input-tax-credit determination where the stated basis is fraud, wilful misstatement or suppression of facts to evade tax. The notice should identify the allegation and proposed amounts. Treat those words as the department’s pleaded grounds before adjudication, not as a final finding of fraud.
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Because sections 73 and 74 use different statutory grounds, do not answer a section 74 notice as though it were an ordinary reconciliation query. Address the alleged conduct, the evidence said to support it and why the statutory ingredients are or are not met, in addition to checking the arithmetic.
What to examine in either notice
- The exact provision and sub-section cited.
- The transaction, return, invoice, refund or input-tax-credit issue alleged.
- The tax periods and taxable values used in the calculation.
- The separate figures for tax, interest and penalty, and the basis for each.
- Annexures, data sources, return comparisons and documents said to be missing.
- The channel, address or portal function for filing a reply and the date by which it is expected.
- Whether a personal hearing is offered or can be requested in writing.
What an order means—and why “assessment order” is ambiguous
Under section 75(6) of the Central Goods and Services Tax Act, an order must set out the relevant facts and the basis of the decision. In a section 73 or 74 proceeding, the order is the officer’s determination after the notice, reply and applicable hearing process. It may confirm the proposed amount, reduce it or otherwise dispose of the issues.
The phrase “assessment order” is broader than that determination. The CGST Act has separate assessment routes for specific situations. Classifying the route correctly is more useful than relying on the document’s informal label.
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Section 62 applies where a registered person fails to furnish a specified return despite a notice under section 46. The officer may make a best-judgment assessment using the information available.
The Act provides an important consequence: if a valid return is furnished within 30 days after service of the assessment order, that order is deemed withdrawn. The specified interest and late fee remain payable. This is a statutory consequence tied to the facts and current wording of section 62; confirm that the return is valid, the service date is correct and the provision in force for the relevant period before relying on it.
CBIC assessment materials identify ASMT-13 for a section 62 order. It is not the same procedural document as a DRC-01 section 73 or 74 notice.
Section 63: best-judgment assessment for a person liable to register
Section 63 concerns a taxable person who was liable to register but did not register, or whose registration was cancelled even though tax liability remained. The Act requires an opportunity of hearing. CBIC assessment guidance describes a notice in ASMT-14 followed, after time to reply, by an order in ASMT-15.
The practical question is whether the person fell within the registration and tax-liability conditions for the period concerned. A reply should address those facts, the department’s turnover or transaction evidence and the calculation method, rather than merely disputing a portal total.
Section 64: summary assessment in special cases
Section 64 permits a summary assessment in specified special circumstances where the officer has evidence of a liability and delay may adversely affect revenue. The provision includes a permission requirement and a route to seek withdrawal in the circumstances stated by the Act.
Because section 64 is an exceptional route, check the permission, the evidence and the precise statutory conditions in the order. Do not assume that the response and appeal path is identical to a section 73 or 74 proceeding.
DRC and ASMT forms: useful clues, not substitutes for the law
| Form | Role described in the CGST Rules or CBIC guidance | How to use the clue |
|---|---|---|
| DRC-01 | Electronic summary accompanying specified notices. | Use it to match the notice number and headline amounts, then read the detailed notice and annexures. |
| DRC-02 | Summary of specified statements. | Check which statutory statement and period it relates to; it is not automatically a final order. |
| DRC-03 | Intimation for specified voluntary or payment actions. | Verify what liability or payment the intimation covers and whether it closes any proceeding. |
| DRC-04 | Acknowledgement described in the Rules. | Keep the acknowledgement with the underlying submission or payment evidence. |
| DRC-05 | Used to conclude proceedings in the stated early-payment circumstances. | Check the provision and conditions before treating a proceeding as closed. |
| DRC-07 | Electronic summary of specified orders stating amounts payable. | Reconcile it with the signed or detailed order; the summary does not replace the reasons. |
| ASMT-13 | Assessment order identified in CBIC guidance for section 62. | Look for the section 62 return-default trigger and the statutory 30-day return consequence. |
| ASMT-14 and ASMT-15 | Notice and order sequence described for section 63. | Check the hearing opportunity, registration status and best-judgment calculation. |
| APL-04 | Summary accompanying an appellate order; CBIC appeal rules state that it indicates the final demand confirmed. | Use it to compare the appellate result with the original order and the amount now confirmed. |
The CGST Rules PDF commonly consulted for these forms is amended only through 1 January 2022. Later amendments and portal implementations can change a form, label or workflow, so verify the version applicable to the tax period and the date of service.
Section 75 safeguards that separate a proposal from a decision
Section 75 contains general provisions for determination. It explains why a notice and an order are different procedural stages.
Opportunity of hearing
Section 75(4) states: “An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”
If you want to be heard, make the request in writing through the channel specified in the notice and retain proof of submission. A hearing request should identify the notice number, tax period and issues requiring oral explanation. Do not assume that uploading a general reply automatically records a separate hearing request.
Reasons and relevant facts
The order must set out the relevant facts and the basis of the decision. Compare each finding with your reply, documents and the calculations in the notice. If the order simply repeats a figure without addressing a material explanation, record that difference when considering the available remedy.
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Section 75 also prevents an order from demanding more than the amount specified in the notice or confirming a demand on grounds outside those specified in the notice. This does not mean every amount in a notice is correct; it means the final decision must stay within the statutory and factual boundaries of the notice.
What to do after receiving a notice: a practical sequence
- Preserve the record. Download the notice, DRC-01 or other summary, annexures, prior correspondence and service details. Save the portal acknowledgement after every upload.
- Classify the proceeding. Mark whether it is section 73, section 74, section 62, section 63, section 64 or another provision. Write down whether the document is a notice, statement, acknowledgement or order.
- Build a period-by-period reconciliation. Match the alleged turnover, output tax, refund or input tax credit to returns, books, invoices, payment challans, e-way or other records actually relevant to the allegation. Keep tax, interest and penalty in separate columns.
- Test the legal ingredients. For section 73, address why the issue is not payable or why the calculation is wrong. For section 74, address each alleged act of fraud, wilful misstatement or suppression and the evidence said to support it. For sections 62 and 63, address the filing, registration and best-judgment conditions.
- Prepare a indexed reply. Use the notice paragraph or annexure number as a heading, state whether you admit or dispute it, give the calculation and attach a clearly named document. Explain assumptions and identify any figure that cannot be reconciled.
- Request a hearing when needed. Make the written request required by section 75(4), especially where the facts, classification or computation cannot be explained adequately in a document-only reply.
- File through the specified procedure. Follow the portal or notice instructions, use the correct form or reply function and confirm the upload status. Keep the final submitted file, acknowledgement number and timestamp.
- Monitor the next communication. A reply does not itself close a proceeding. Watch for a hearing notice, order, payment entry, correction communication or appellate direction.
What to do after an order
Check that the order matches the proceeding
- Does it cite the same statutory section and tax periods as the notice?
- Does it address the grounds and evidence actually stated in the notice?
- Is the confirmed tax, interest and penalty no higher than the notified amount?
- Are the findings and calculation reasons set out, as section 75 requires?
- Does DRC-07, ASMT-13, ASMT-15 or another summary match the detailed order?
Identify the available route and date
Depending on the section and facts, the next step may involve payment, a correction or withdrawal mechanism, an appeal or another statutory application. These routes do not share one universal deadline. Use the service date on the order, the directions printed in it and the current CGST, State GST, UTGST or IGST rules that apply. If the matter is material, have a GST practitioner or tax counsel review the order before the deadline expires.
Do not confuse payment with agreement
A payment or voluntary intimation can have a particular procedural effect under the Rules, but the effect depends on the provision and timing. Read the relevant rule and the document before treating DRC-03, DRC-05 or another payment entry as a complete resolution.
Section 73/74 proceedings compared with sections 62, 63 and 64
| Comparison point | Sections 73 and 74 | Section 62 | Section 63 | Section 64 |
|---|---|---|---|---|
| Trigger | Alleged unpaid or short-paid tax, erroneous refund or wrongly availed/utilised input tax credit; section 74 adds a fraud, wilful-misstatement or suppression allegation. | Failure by a registered person to furnish a specified return after a section 46 notice. | Person liable to register but unregistered, or registration cancelled despite tax liability. | Specified special case where evidence of liability and delay may adversely affect revenue. |
| Initial document | Show-cause notice proposing liability; DRC-01 may accompany specified notices. | Best-judgment assessment order; ASMT-13 is identified in CBIC guidance. | Notice and hearing sequence, followed by order; ASMT-14 and ASMT-15 are identified in CBIC guidance. | Summary assessment under the conditions and permission requirements in section 64. |
| Response or hearing | Reply to the proposed grounds and amounts; written hearing request is protected by section 75(4). | Filing a valid return within the statutory 30-day period after service can trigger deemed withdrawal, while interest and late fee remain payable. | Opportunity of hearing is required before the order. | Use the specific withdrawal or review route stated by the Act and order. |
| What follows | Determination order stating facts, reasons and confirmed amounts. | Order based on information available to the officer, subject to the section 62 consequence. | Best-judgment order after the stated opportunity. | Order under the special summary-assessment mechanism. |
| Remedy | Use the applicable correction, payment or appeal route after the order; deadlines depend on current law and facts. | Check whether the return-within-30-days rule applies, then identify any remaining dues or remedy. | Review the order’s appeal or other remedy directions for the relevant jurisdiction. | Check the specific statutory route; do not import a section 73 deadline automatically. |
Common mistakes and how to correct them
| Mistake or symptom | Why it causes trouble | Better response |
|---|---|---|
| Treating DRC-01 as the final demand | DRC-01 is a summary accompanying specified notices, not a substitute for the notice or adjudication. | Read the detailed notice, reply before the stated date and track the later order. |
| Assuming every assessment order is section 73 or 74 | Sections 62, 63 and 64 have different triggers and consequences. | Use the printed section and facts to classify the route before choosing a response. |
| Ignoring the fraud wording in section 74 | A section 74 allegation has different statutory grounds from a section 73 non-fraud case. | Answer each alleged element and the evidence, not only the tax arithmetic. |
| Replying only to the headline amount | The liability may depend on a particular invoice set, period, credit condition or calculation method. | Respond paragraph by paragraph and reconcile each component of tax, interest and penalty. |
| Skipping a written hearing request | A general upload may not clearly invoke the section 75(4) hearing safeguard. | Send a distinct written request through the instructed channel and retain the acknowledgement. |
| Using an old form or deadline from another case | The Rules and portal workflows change, and different sections do not share one deadline. | Verify the current form, tax period, service date and jurisdiction-specific instruction. |
| Paying without checking the procedural effect | A payment form can have a particular consequence only in the circumstances stated by the Rules. | Confirm whether the payment is voluntary, provisional, accepted or closing a proceeding. |
| Missing the appeal date while seeking informal clarification | Informal correspondence may not suspend a statutory period. | Record the order’s remedy and deadline immediately and obtain professional advice if necessary. |
When professional review is sensible
Consider a qualified Indian GST practitioner or tax counsel when the notice alleges fraud, wilful misstatement or suppression; covers several tax periods; relies on complex input-tax-credit or refund chains; involves a cancelled registration; or threatens an amount that could affect cash flow or litigation strategy. A professional can review the served documents, evidence, calculations, hearing record and available remedy. No adviser can responsibly promise an outcome without examining that record.
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Quick Recap
Key takeaways
- A section 73 or 74 notice proposes a liability and seeks your explanation; it is not the final determination.
- An order records the officer’s decision, but “assessment order” may refer to the distinct routes in sections 62, 63 or 64 as well as a determination following sections 73 or 74.
- Section 73 states non-fraud grounds; section 74 states fraud, wilful-misstatement or suppression grounds. The latter are allegations until established through the process.
- DRC-01 and DRC-07 are electronic summaries associated with notices and orders. ASMT-13, ASMT-14 and ASMT-15 point to specified assessment routes.
- Section 75 requires a hearing in the circumstances stated in section 75(4), requires relevant facts and reasons in the order, and limits confirmation to the notice’s amount and grounds.
- For a real document, verify the section, tax period, service date, current form, response or appeal deadline and jurisdiction before filing, paying or relying on a withdrawal provision.
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